Your marriage is about to dissolve in the divorce court. This is a tremendously emotional time in the lives of both partners. Both will need to learn about how financial issues affect each partner. You may want legal advice to help you with these issues.
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
Joint responsibility for a home mortgage will need to be reworked. Such an issue needs careful management especially when child support and alimony is in the mix. It's possible that you may decide to sell the home and split the proceeds or you may sell the home to one partner as responsible party.
Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.
Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to "collection" and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.
You want to make certain that all cash assets are divided. Then, close all joint checking and savings accounts. One spouse should not be able to get to the accounts of the other.
During this process, pay all debts even if you have to sell some things to do so. This way, you are each then responsible for your own individual debts. You want to have your own financial base when you leave the marriage.
Financial arrangements will be specifically written into your final divorce decree including the responsible party for debts. However, if any joint debts remain and the decreed responsible party defaults on payment, creditors may still seek payments from the ex spouse. Take care of this possibility. - 15485
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
Joint responsibility for a home mortgage will need to be reworked. Such an issue needs careful management especially when child support and alimony is in the mix. It's possible that you may decide to sell the home and split the proceeds or you may sell the home to one partner as responsible party.
Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.
Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to "collection" and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.
You want to make certain that all cash assets are divided. Then, close all joint checking and savings accounts. One spouse should not be able to get to the accounts of the other.
During this process, pay all debts even if you have to sell some things to do so. This way, you are each then responsible for your own individual debts. You want to have your own financial base when you leave the marriage.
Financial arrangements will be specifically written into your final divorce decree including the responsible party for debts. However, if any joint debts remain and the decreed responsible party defaults on payment, creditors may still seek payments from the ex spouse. Take care of this possibility. - 15485
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